Key TakeawaysFastly shares surged Monday following an upgrade by Piper Sandler, with analysts citing new business strength and a “favorable competitive landscape."The analysts lifted their rating to "overweight" from "neutral," though they reduced the stock's price target to $16 from $19.Piper Sandler said the cloud computing company had "multiple upside levers."
Shares of cloud computing company Fastly (FSLY) jumped 7% in intraday trading Monday as Piper Sandler upgraded the stock, citing \”multiple upside levers\” across the content delivery network (CDN) business.
Piper Sandler analysts James Fish and Quinton Gabrielli raised their rating of Fastly to \”overweight\” from \”neutral,\” though they lowered the stock\’s price target to $16 from $19.
The analysts said that Fastly could benefit from new business strength and a “favorable competitive landscape,” noting the exit of some competitors could help drive opportunities and favorable pricing for Fastly.
Fish and Gabrielli also said Fastly’s new subscription packaging could help visibility and web delivery penetration, and its recently introduced "Basic" tier could drive sales for low-end and commercial customers.
Fastly shares were 7% higher at $13.40 as of 2:45 p.m. ET Monday. However, even with Monday's gains, shares have lost nearly 24% of their value since the start of the year.
